Summary:
- The transaction between TWTR and Musk.
- Aspects that still need to happen for the transaction to close.
Twitter Board approves the sale of TWTR to Elon Musk.
Last week Twitters (TWTR) board agreed to sell the company, when the deal was approved, the share price of TWTR dropped and since has struggled to fully recover. Just because the board accepted the $44bn takeover offer from Musk does not mean the transaction is closed, there is still a way to go until the deal gets closed, if this happens, investors in the Tech and Social media industries could face a completely different landscape in the future. The shareholders will get $54.20 per share that they own.
Twitter to become a private company if or when the transaction goes through.
If or when the transaction closes, TWTR will become a private company and with that there will be less financial and operational transparency.
Read next: Exxon and Chevron Earnings Announcements Has Little Effect on Brent Crude Oil Prices, Bullish Market Sentiment For Cotton and Gold Prices Rise Again
Share Price movements
There are still aspects that need to be addressed for the transaction to close, that means the shareholders will have to approve at the next annual general meeting (AGM), and the deal must also meet regulatory approval and other closing considerations.
The price of TWTR Shares has not been rising like in a normal acquisition, this could be because investors are uncertain of what the future holds for this social media giant.
TWTR Price Chart
Read next: Amazon (AMZN) And Apple (APPL) Post Earnings Announcement Performance. Elon Musk Moves On To Coca-Cola!?
Sources: ft.com, finance.yahoo.com
